Income Tax

12 Months Ended

Dec. 31, 2025

Notes and other explanatory information [abstract]

23.

Income Tax

A reconciliation of current income taxes at statutory rates with the reported taxes is as follows:

For the years ended December 31,	2025			2024			2023

Net income (loss) before income taxes	$	(52,713,569	)	$	(6,681,589	)	$	1,816,484
Effective tax rate		27	%		27	%		27	%
Expected income tax recovery	$	(14,232,664	)	$	(1,804,029	)	$	490,451
Change in statutory, foreign tax, foreign exchange rates, and other		3,177,821			(109,080	)		(199,665	)
Permanent differences		999,092			2,628,742			1,335,113
Adjustment to prior years provision versus statutory tax returns and expiry of non-capital losses		122,462			381,147			249,576
Change in unrecognized deductible temporary differences		6,440,621			1,350,273			(15,149	)
Total	$	(3,492,668	)	$	2,447,053		$	1,860,326

For the years ended December 31, 2025 and 2024, the tax effected items that give rise to significant portions of the deferred tax assets and deferred tax liabilities as at year-end are presented below:

As at December 31,	2025			2024			2023
Deferred tax liabilities
Oil and gas properties	$	-		$	(10,117,185	)	$	(9,990,074	)
Property and equipment		(9,791	)		(80,212	)		(60,011	)
Convertible debt		-			(76,898	)		(327,305	)

Deferred tax assets
Assets held for sale	$	-		$	388,917		$	311,357
Asset retirement obligation		9,791			1,179,042			1,249,406
Non-capital losses		-			4,466,394			6,685,079
Net deferred tax assets (liabilities)	$	-		$	(4,239,942	)	$	(2,131,548	)

The Company recognizes tax benefits on losses or other deductible amounts where the probable criteria for the recognition of deferred tax assets has been met. The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consist of the following amounts:

	2025		Expiry	2024		Expiry	2023		Expiry

Share issue costs		773,177	2028		1,899,434	2028		2,782,651	2027
Oil and gas properties		124,154	N/A		-	N/A		-	N/A
Property and equipment		29,700	N/A		19,579	N/A		16,101	N/A
Asset retirement obligation		6,363,104	N/A		-	N/A		-	N/A

Non-capital losses		66,363,185	See below		37,156,322	See below		23,300,283	See below
Canada		19,097,046	2042 to 2044		14,174,648	2042 to 2044		9,283,130	2042 to 2043
USA		17,378,146	indefinite		12,362,896	indefinite		4,228,651	indefinite
USA		10,615,538	2028 to 2037		10,615,538	2028 to 2037		9,785,059	2028 to 2037
Turkey		19,267,743	N/A		-	N/A		-	N/A
Bulgaria		4,712	2028		3,240	2028		3,443	2028

TRILLION ENERGY INTERNATIONAL INC.

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Expressed in U.S. dollars)